Wall Street starts Tempus AI coverage after IPO, shares climb

Several Wall Street firms initiated coverage on Tempus AI (TEM) stock, less than a month after the operator of the world’s largest library of clinical and molecular data went public via an IPO.

Among those, JPMorgan started coverage with an Overweight rating on TEM, with a price target (PT) of $42 by December 2025.

The firm highlighted Tempus AI’s leading role in the clinical oncology diagnostics field and its unique patient database that combines clinical genomic data. This database has been effectively monetized through licensing agreements, which supports the company’s projected ~33% revenue compound annual growth rate (CAGR) from 2024 to 2027.

JPMorgan also anticipates Tempus AI to become adjusted EBITDA positive by the second half of 2025, driven by revenue growth and the profitability of its Data business.

“While TEM shares have been volatile post-IPO, we see a favorable setup for the stock over time given the runway for future growth in Genomics, which in turn has a flywheel effect and renders its Data business more valuable,” analysts wrote.

Stifel echoed a positive sentiment, initiating coverage with a Buy rating and setting a target price of $45. Stifel’s outlook pointed to the significant trend of applying personalized genetic and clinical information in oncology, an area where Tempus AI has developed a differentiated portfolio.

With strong momentum in adoption and expansion, Stifel sees solid growth prospects for the company. Although profitability is a work in progress, improving gross margins and balanced spending are expected to lead to positive cash generation in 2026.

Lastly, Morgan Stanley also began coverage with an Overweight rating, accompanied by a $44 price target.

The firm regards Tempus AI as a unique platform company at the crossroads of healthcare and data/AI, focusing on creating intelligent diagnostics for precision medicine.

Morgan Stanley pointed out that Tempus AI’s proprietary technology platform and operating system unlock a total addressable market (TAM) of approximately $190 billion, spanning Genomics and Data Services.

Currently, a total of seven analysts started research coverage on TEM stock, all of which assigned it a Buy rating.

Shares in Tempus AI rose nearly 4% ahead of Tuesday’s market open.